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Alon USA Sets Terms for IPO

DALLAS -- Alon USA Energy Inc., an independent oil-refining company, announced the terms for an initial public offering of stock worth as much as $136 million.

The IPO consists of 8.5 million shares for $14 to $16 each, according to a Securities and Exchange Commission filing.

The Dallas-based company, which refines and markets petroleum products mainly in the southwestern and south central United States, plans to list its shares on the New York Stock Exchange under the symbol "ALJ."

In May, Alon USA said it planned to sell up to $125 million in common stock in an initial public offering, but gave no details.

The company owns and operates a sour crude oil refinery in Big Spring, Texas, and owns and leases pipelines and terminals. It also operates 7-Eleven convenience stores in west Texas and New Mexico and is a major producer of asphalt.

Its parent, Alon Israel Oil Co., markets petroleum products, operates service stations and convenience stores and holds exclusive franchise rights for the Pizza Hut and KFC brands in Israel.

According to a filing with the Securities and Exchange Commission, proceeds from the IPO will be used to pay down debt, pay a dividend to stockholders and for general corporate purposes.

Managers of the offering have received an option to sell up to an additional 1.3 million shares to meet demand, the filing said.

For the three months ended March 31, Alon USA had net income of $22.4 million, up from $1.5 million a year before.

No new major refinery has been built in the United States for nearly 30 years and the resulting refining bottleneck is seen as part of the explanation for soaring oil prices. Alon USA's 76-year-old refinery, with its throughput capacity of 70,000 barrels of oil per day, is unlikely to go out of fashion anytime soon, industry observers say.
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